Economics - Progress Assessment 2 Study Guide

Sara needs to study for her math test tomorrow. Her friend Judy texted and asked her to come hang out at Mountain Park Park. If Sara goes with Judy, which of the following is an opportunity cost?

• Her friends will give her a hard time for not coming.

• Sara's ability to improve on activities at the park.

• Sara's lack of support from her friends.

• Sara's score on her math test.

A consumer is someone who ---

• gets money from a bank

• works at a job

• provides a service

• buys goods and services

The government uses taxes to

• stop building schools and roads

• provide services to citizens.

• keep citizens from having fun

• take away our rights.

A ---- paid for by the government using taxes.

• clothing store

• police officer

• barber shop

• grocery store worker

Food in restaurants like Chipotle and Subway are allocated, or distributed, using _____________.

• lottery

• consumers

• price

• taxes

Mrs. Sanders wants to buy Starbucks Coffee and Dunkin Donuts. She only has enough money for one. Mrs. Sanders buys the Starbucks Coffee. What is the opportunity cost?

• Starbucks Coffee

• The money she spent

• Dunkin Donuts

• The lunch she bought at the mall

Countries create currency so ----

• people can become wealthy.

• people can barter for the goods that they want.

• people can buy goods and services.

Trade with other countries important because

• it gives customers more choices.

• it helps entrepreneurs take risks.

• it protects the environment from pollution.

• it makes shopping harder.

Mrs. Sanders had a pen, but she wanted a pencil. Mr. Walker had a pencil, but wanted a pen. They voluntarily exchanged the pen and pencil with each other. Who benefitted from this exchange?

• Only Mrs. Sanders

• Only Mr. Walker

• Both Mrs. Sanders & Mr. Walker

• Neither Mrs. Sanders or Mr. Walker